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Q: I listed my house with a real estate professional. The agreement will be expiring soon and I’d like to sign with another representative. Is my original representative entitled to commission even if he didn’t find the buyer?

A: It’s not uncommon for a listing agreement to expire before you and your real estate professional are able to find a buyer for your property. Deciding whether to resign with your current brokerage or try a different one can be difficult.

A typical listing agreement will include a “holdover” clause to protect the interests of the real estate professional who has put in the time and effort to help you sell your home.

Generally, the holdover clause will state that if the property is sold within “X” days of the contract expiry to someone who was introduced to the property during the term of the contract, commission may still be payable to that brokerage. The length of the holdover period is negotiable and will be specified in your listing agreement. Most Buyer Representation Agreements also include a holdover clause.

Seek legal advice if you have any concerns.

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If you have a question for Joe, email askjoe@reco.on.ca . Joseph Richer is RECO’s registrar and is in charge of the administration and enforcement of all rules under the Real Estate and Business Brokers Act. You can find more tips at reco.on.ca, follow on Twitter @RECOhelps or on YouTube at youtube.com/recohelps.

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